AUD/USD analysis: nearing the 0.7300 level

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7285

Aussie rallying alongside with Wall Street, further gains likely.
The American dollar remains under pressure at the end of the day.

The AUD/USD pair reached a new three-week high of 0.7288, holding nearby by the end of the US session, underpinned by US indexes rallying to record highs, and broadly dollar's weakness. The RBA Bulletin released at the beginning of the day weigh on the Australian market as it highlighted the risks the Consumer Discretionary sector is facing amid increased competition and slow growth in consumer spending, but risk appetite weighed more, leading to strong gains in worldwide indexes. There are no macroeconomic figures scheduled in Australia for this Friday.

The technical picture indicates that the bullish potential remains firmly in place and that the current rally could extend on a break above the 0.7300 figure, as, in the 4 hours chart, the pair has held above the 61.8% retracement of its latest daily decline, at around 0.7255. Furthermore, the 20 SMA maintains a sharp upward slope above the 100 SMA and en route to surpass the 200 SMA, while technical indicators resumed their advances after a modest correction from overbought readings, with the RSI now accelerating north at around 73.

Support levels: 0.7255 0.7225 0.7190

Resistance levels: 0.7300 0.7330 0.7360

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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